Correlation Between Leland Thomson and HUMANA
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By analyzing existing cross correlation between Leland Thomson Reuters and HUMANA INC, you can compare the effects of market volatilities on Leland Thomson and HUMANA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Leland Thomson with a short position of HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leland Thomson and HUMANA.
Diversification Opportunities for Leland Thomson and HUMANA
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Leland and HUMANA is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Leland Thomson Reuters and HUMANA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC and Leland Thomson is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Leland Thomson Reuters are associated (or correlated) with HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC has no effect on the direction of Leland Thomson i.e., Leland Thomson and HUMANA go up and down completely randomly.
Pair Corralation between Leland Thomson and HUMANA
Assuming the 90 days horizon Leland Thomson Reuters is expected to generate 1.57 times more return on investment than HUMANA. However, Leland Thomson is 1.57 times more volatile than HUMANA INC. It trades about 0.31 of its potential returns per unit of risk. HUMANA INC is currently generating about -0.22 per unit of risk. If you would invest 2,345 in Leland Thomson Reuters on August 29, 2024 and sell it today you would earn a total of 284.00 from holding Leland Thomson Reuters or generate 12.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Leland Thomson Reuters vs. HUMANA INC
Performance |
| Timeline |
| Leland Thomson Reuters |
| HUMANA INC |
Leland Thomson and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leland Thomson and HUMANA
The main advantage of trading using opposite Leland Thomson and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leland Thomson position performs unexpectedly, HUMANA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HUMANA will offset losses from the drop in HUMANA's long position.| Leland Thomson vs. Direxion Monthly Nasdaq 100 | Leland Thomson vs. Nasdaq 100 2x Strategy | Leland Thomson vs. Nasdaq 100 2x Strategy | Leland Thomson vs. Ultranasdaq 100 Profund Ultranasdaq 100 |
| HUMANA vs. Zhihu Inc ADR | HUMANA vs. National CineMedia | HUMANA vs. Comstock Holding Companies | HUMANA vs. PennantPark Investment |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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